What Is Shiba Inu and How Does It Work? Who Created SHIB?

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Shiba Inu has emerged as one of the most talked-about cryptocurrencies in recent years. Often dubbed the "Dogecoin killer," SHIB is more than just a meme-inspired token—it represents a bold experiment in community-driven decentralization. Built on the Ethereum blockchain, Shiba Inu leverages the power of decentralized finance (DeFi), non-fungible tokens (NFTs), and community governance to challenge traditional financial systems.

The Origins of Shiba Inu

Launched in August 2020 by an anonymous founder known only as Ryoshi, Shiba Inu was designed from the ground up to be fully community-led. Unlike many other crypto projects with centralized teams and corporate backing, SHIB began with no funding, no official leadership, and no promises—only the vision of true decentralization.

Ryoshi transferred 50% of the total SHIB supply—half a quadrillion tokens—to Ethereum co-founder Vitalik Buterin as a symbolic gesture of trust. The remaining 50% was locked into Uniswap for liquidity. This move not only ensured fair distribution but also placed immense influence in the hands of the community.

In May 2021, Buterin made headlines by burning 90% of his SHIB holdings—worth approximately $6.7 billion at the time—effectively removing those tokens from circulation forever. He donated the remaining 10% to an Indian COVID-19 relief fund created by Sandeep Nailwal, co-founder of Polygon. This act significantly reduced market volatility and demonstrated the potential for large-scale crypto philanthropy.

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How Does Shiba Inu Work?

SHIB is an ERC-20 token running on the Ethereum network, which allows it to integrate seamlessly with DeFi platforms, wallets, and smart contracts. But Shiba Inu isn't just a single token—it's part of a broader ecosystem that includes multiple assets and utilities.

The Shiba Inu Ecosystem: SHIB, LEASH, and BONE

The project revolves around three core tokens:

ShibaSwap: A Community-Driven DEX

ShibaSwap is the decentralized exchange (DEX) developed by the Shiba Inu team. It allows users to swap tokens, provide liquidity, and stake their assets through a process called “burying” (staking) and “digging” (earning rewards).

By staking SHIB, users earn xSHIB—a receipt token representing their staked amount plus accumulated rewards—and periodic payouts in BONE. They also receive 0.3% of all transaction fees generated on the platform when trading ETH pairs.

This incentivized model encourages long-term holding and active participation, reinforcing decentralization and user ownership.

Who Created Shiba Inu?

Despite widespread speculation, the true identity of Ryoshi, the creator of Shiba Inu, remains unknown. In a May 2021 Medium post, Ryoshi wrote:

“I am nobody. I am not important. The effort to reveal my identity would be disappointing even if successful. I’m simply an unimportant person typing, and I am replaceable. I am Ryoshi.”

This philosophy underscores the project’s core principle: the community is the project. There is no central figurehead; decisions are driven collectively.

Some Reddit users have speculated that Ryoshi might have ties to Ethereum developers due to a photo showing Vitalik Buterin in Japan with Karl Floersch, an Ethereum researcher. However, no concrete evidence supports these claims.

What matters more than individual identities is the strength of the Shib Army—the passionate global community supporting Shiba Inu. With over 480,000 members across forums, social media, and decentralized platforms, this grassroots movement continues to drive innovation and adoption.

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What Makes Shiba Inu Unique?

Several factors set Shiba Inu apart from other cryptocurrencies:

These initiatives go beyond speculation—they build real value and purpose into the token’s mission.

What Gives Shiba Inu Value?

While meme culture helped launch SHIB into popularity, its sustained value comes from tangible utilities:

As DeFi adoption grows, so does the relevance of ecosystems like Shiba Inu that are built natively within this framework.

How Many SHIB Tokens Are in Circulation?

Shiba Inu has a total supply of one quadrillion SHIB. Of this:

The circulating supply is dynamic due to ongoing staking, burning, and usage across DeFi platforms. Market cap fluctuates based on price and active supply.

Additionally:

This tiered structure ensures balance between accessibility (SHIB), exclusivity (LEASH), and governance (BONE).

Security: How Is the Network Protected?

Shiba Inu itself does not operate its own blockchain—it relies on Ethereum’s security infrastructure. Currently secured by Proof-of-Stake (PoS), Ethereum offers high resistance to attacks and ensures reliable transaction validation.

Since SHIB cannot be mined (all tokens were pre-minted), staking occurs through ShibaSwap rather than traditional mining pools. Validators on Ethereum secure the network by locking up ETH, indirectly protecting all ERC-20 tokens like SHIB.

How to Use Shiba Inu

SHIB serves multiple purposes:

Choosing a Wallet for SHIB

You can store SHIB in any wallet that supports ERC-20 tokens.

Cold Wallets (Offline)

Hot Wallets (Online)

Ensure your chosen service emphasizes security, encryption, and user control.

Frequently Asked Questions (FAQ)

What is Shiba Inu?

Shiba Inu (SHIB) is a decentralized cryptocurrency built on Ethereum, created in 2020 as a community-driven alternative to Dogecoin.

Can I mine SHIB?

No. All SHIB tokens were pre-minted at launch. Instead of mining, you can stake SHIB on ShibaSwap to earn rewards.

Is SHIB built on Ethereum?

Yes. SHIB is an ERC-20 token, meaning it operates on the Ethereum blockchain and benefits from its smart contract capabilities.

What is ShibaSwap?

ShibaSwap is Shiba Inu’s decentralized exchange where users can trade tokens, provide liquidity, and stake SHIB to earn BONE and xSHIB rewards.

What gives SHIB its value?

Value comes from utility (staking, DeFi), scarcity mechanisms (burns), community strength, and integration with Ethereum’s expanding ecosystem.

How do I buy SHIB?

You can purchase SHIB on major exchanges like OKX, Binance, Coinbase, and others using fiat or cryptocurrency.

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